December 5, 2019
Aprosoja: Brazil meatpackers need to prepare for possible corn supplies shortage in 2020
Bartolomeu Braz, president of national grain grower group Aprosoja said Brazilian meat packers must be ready for the possibility of Brazilian corn shortages from increased demand among export markets and low supplies, reported Reuters.
He said poultry and swine producers should purchase corn in advance or enter the futures market as they are key suppliers to China, which is currently managing an African swine fever outbreak that has caused dwindling swine supplies.
Corn supplies in Brazil's centre-south are expected to drop by May 2020 to a three-year low. Corn and soybeans are used as livestock feed by Brazil's meat producers.
Brazilian corn is harvested around June annually after it is mostly planted on the first quarter of the year.
The second harvest of corn this season (75% of the country's total corn production) will be delayed because of weather problems affecting soybeans. Before the second corn, soybeans are cultivated every cycle.
Braz said Brazilian corn is in high demand overseas, so local meatpackers must plan to stock up early.